The Federal Government is seeking bigger fines and jail terms for dodgy bankers and other corporate criminals.

The tough new penalties include maximum fines of $210 million for financial services companies, or even having their annual turnover stripped by 10 per cent.

The proposed regime includes a new maximum criminal penalty of 10 years behind bars for individuals, and the greater of a $945,000 fine or three times the benefits gained or loss avoided.

Corporations could face maximum penalties of $9.45 million, three times the benefits gained or 10 per cent of their annual turnover, capped at $210 million.

Individuals who provide false or misleading information to ASIC could face a maximum five-year prison term, up from two years.

“Stronger new penalties for corporate and financial misconduct will ensure that those who do the wrong thing will receive appropriate punishment,” said Financial Services Minister Kelly O'Dwyer.

“These reforms represent the most significant increases to the maximum civil penalties, in some instances for more than 20 years.

“They bring Australia's penalties into closer alignment with leading international jurisdictions, and ensure our penalties are a credible deterrent to unacceptable misconduct.”

The proposed changes will require consultation and an amendment to the Corporations Act.